The decentralized exchange (DEX) Mango Markets, based on Solana (SOL), is closing down due to a series of regulatory issues faced last year.

On Saturday, the DEX announced its closure and put forward proposals to make borrowing on the platform economically unviable.

“Mango Markets will be shutting down. It is time for users to close their positions.”

The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) initiated parallel investigations into Mango Markets after crypto trader Avraham Eisenberg exploited the protocol, resulting in $110 million worth of digital assets in 2022.

The SEC accused the DEX’s decentralized autonomous organization (DAO) of evading registration requirements and depriving investors of crucial protections.

According to the regulator, Mango DAO raised over $70 million through unregistered offers and sales of MNGO tokens. It also alleges that affiliated entities, Blockworks Foundation and Mango Labs LLC, engaged in unregistered broker activities.

In September, Mango DAO, Blockworks Foundation, and Mango Labs agreed to pay the SEC a civil penalty of nearly $700,000, without admitting or denying the allegations. They also agreed to destroy their MNGO tokens and request the removal of MNGO tokens from trading platforms. Additionally, the DAO voted to propose a $500,000 settlement with the CFTC.

Eisenberg was convicted of commodities fraud, commodities market manipulation, and wire fraud by a jury last April. His sentencing hearing has recently been postponed until April 2025.

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Generated Image: Midjourney.